Here are some data that might be useful. This information is as of September 10, 2008 brought to you by an analyst…

Current Available Listings of ALL homes

2,061

QTY (not $) of all homes sold in past 30 days

393

Months of Inventory (based on above data)

5

Average DOM for ALL homes

62

Est monthly % rate of decline (if applicable)

4%

For the month of Aug 2008, the market has fallen 3.5% in price (Aug = $633/SF vs July = $656/SF) and 19% in sales volume (Aug = 393 sold vs July = 486 sold). The days on market increased by 19% from 52 DOM (July) to 62 DOM (August). These statistics are consistent with seasonal market trends. July has traditionally been the most active time for Real Estate in SF. Of the 2061 units available, 912 are SFRs and 1149 are condos/TH/TICs. Although SFRs represent a smaller share of the market, there are more REOs than Short Sales for SFRs. Of the 912 SFRs, 43 are REOs and 84 are Short Sales. 13.9% of the SFRs are distressed listings. Of the 1149 condos/TH/TICs, 29 are REOs and 27 are Short Sales. Distressed listings only represent 4.8% of the condo/TH/TICs market. Overall as a county and city, only 8.9% of the market is represented by a distressed listing. These statistics do vary amongst the 10 sub-districts of San Francisco. District 10 is the most severely hit with 24.9% of all active listings being a REO/Short Sale (354 Listings and 86 REOs/Short Sales). District 7 is among the least hit with 0.03% distressed listings (132 listins and 4 REOs/Short Sales). As we approach the fall season, one can expect to see continued price and volume decline.

Lately due to the sub-prime and the slowdown of the market, many people are wondering just what is really going on with the “MARKET” in San Francisco.

Unfortunately, there is really no short and definitive answer, because in San Francisco, each house is different, each block is different, each neighborhood is different. And for those of you who live in the city, you can be sure to attest that what I am saying is very very true.

That’s not to say that I am arguing that things are rosy in San Francisco either. There are signs of slowdown in many circumstances. I can say that inventory is staying on the market longer, and under circumstances where the seller needs to get out, prices are lowered. I’ve also seen many sellers try to test the market to try to off-load “IF THEY CAN STILL MAKE A PROFIT”, but decide not to when the momentum is not there. So overall, strangely but surely, this is the illustration of why people say around the world that “San Francisco” is one of the most amazing and sought after cities in the world!!! Ah… We are very lucky to be here.

So… What does this mean to buyers and sellers…

1. Buyers should be on the look out. You should actively take the time to shop around because now you are the kings and queens right now. And if you are like me, you would balance “what you like” and “the value” you are getting when you purchase a property. Right now you can find some really good values if you look hard. But it takes time and repeated open house visits to understand this.

2. Sellers should be especially selective of your agents. You should not list your home with someone who doesn’t have enough experience in the field. When I say that, I mean someone who has never been through a slower market. The last 5 years were a breeze for real estate agents. Anyone who breathes could do it simply because of the craziness of the market, but now Realtors are going to be put to the test. If you want any advise on what to look for, you can call me at 415 420 4888. I can give you a few pointers.